AIG Fire Sale Continues

American International Group Inc.'s efforts to divest business units seem to be picking up steam. A published report says AIG will sell 30% of its Asia-based American International Assurance (AIA) to a consortium of Chinese financial services firms.

An initial public offering of AIA on the Hong Kong stock exchange is planned for later this year. In March, a plan to sell AIA to Britain's Prudential Plc for $35.5 billion collapsed after Prudential shareholders balked at the price.

The report of the AIA deal comes in the wake of other transactions intended to help AIG repay the Federal Reserve Bank of New York and the U.S. Treasury for financial assistance provided during the financial crisis.

Separately, New York-based MetLife confirmed that it was proceeding with a debt offering in order to raise $3.15 billion to help fund the cash portion of its $15.5 billion acquisition of another of AIG’s Asia-based units, American Life Insurance Co.